CIVIL AVIATION IN BRITAIN

Press, Volume LXXIV, Issue 22347, 10 March 1938, Page 11

CIVIL AVIATION IN BRITAIN

Report of Cadman

Committee

INCREASE IN SUBSIDIES URGED (BRITISH OFFICIAL WIRELESS.) (Received March 9, 8 p.m.) RUGBY, March 8. The report of the Cadman Committee which held an inquiry into civil aviation in Britain has been issued, together with the observations and decisions of the Government committee. The committee was not called upon to consider either broad questions on principle—on which the policy of the Government has been fully explained to Parliament—or matters relating to the development of civil aviation within the United Kingdom, which were the subject of an inquiry and report by the Maybury Committee. The report has a number of appendices, including one analysing the subsidies paid over several years to certain European air transport companies. This shows that the subsidy received by Imperial Airways in 1937 represented 23.8 per cent, of its total receipts, compared with 65.4 per cent, for Luft Hansa, 34.3 per cent, for Sabena, and 67.8 per cent, for Ala Littoria.

The Imperial Airways subsidy a ton mile in 1937—1 s s.72d—was also lower than that for Air France, Luft Hansa, Sabena, or Aero Transport of Sweden.

The report recognises, and the Government agrees, that the civil and military aspects of aviation cannot fundamentally be separated. The unprecedented effort which the Air Ministry recently had to make in the military sphere has necessarily created the impression that civil aviation has received less attention than is right, but the Government feels that it is now possible to make further efforts to assist civil aviation and substantially improve its organisation. The most important decisions reached by the Government on the recommendations of the committee relate to an increase in expenditure on civil aviation and the allocation of external routes between Imperial Airways and British Airways. Administrative Reorganisation Other decisions affect the administrative reorganisation of these companies, and measures to strengthen the civil aviation organisation within the Air Ministry, as well as matters of research and development, including the recommendation of the Maybury Committee. The Government is prepared to recommend to Parliament that a statutory limit of the aggregate annual amount of subsidies payable to the air transport companies should be increased from £1,500,000 to £3,000,000. In granting the subsidies, the Government will be guided in deciding between competing projects by two main considerations: (1) The importance of maintaining and developing Empire routes. (2) The importance of selecting routes affording an opportunity for substantial traffic and postal revenue, and where important British commercial interests lie. In deciding the ways of encouraging the development and production of civil aircraft, the Government will seek the co-operation of the air operating companies, and act in close consultation with Sir C. Brace-Gardner, the recently-ap-pointed independent chairman of the Society of British Aircraft Construction. Sphere of Imperial Airways The Government accepts the committee's recommendation as to the number of operating companies and the allotment of routes, which are based on the principle that British external air transport should be concentrated in a number of wellfounded and substantial organisations, and that the same external routes should not. be operated by more than one British company. It recommended that Imperial Airways should concern itself primarily with developing Empire air services, and that British Airways should develop other European air services.

The committee recalls the debate in Parliament on November 17, which says revealed genuine apprehension that the country was backward in civil air transport, except on Empire routes. The committee is of opinion that there is reason for more than apprehension. "We view the position with extreme disquiet," the report states. "The.yearly mileage flown on Imperial Airways routes in Europe is less than before the formation of the company. There is not to-day a medium-sized air liner of British construction comparable with the leading foreign types." The Government's reply that it was convinced that the policy of concentrating on Empire routes has been right. The maintenance of these must be the first charge on the subsidy.

The ■ Government also, claims that it consistently followed the policy of developing new experimental types of civil aircraft. The committee understands that Imperial Airways has introduced a new scale of pay for pilots on Empire services, and that it has taken other steps to remove grievances. The "Daily Mail" understands that in consequence of the committee's report the Government has decided to reorganise the Air Ministry department controlling civil aviation. Sir Donald Banks will be offered the control of the reorganised department, and the Government will also appoint an Under-Secretary for Civil Aviation.